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For the next few minutes, you are going to know all about Postal Life Insurance scheme, one of the oldest life insurance schemes in India. 

One day, I entered a post office in Trichy (southern part of Tamil Nadu) to understand about the savings and recurring deposits scheme available. A generous officer there explained me about a life insurance scheme which is a game changer for me that day. 

This scheme was earlier available only for government job holders in India and a percentage of their salary would be deposited in this insurance scheme which will act as retirement plan. This scheme was earlier intended as welfare scheme for the employees of postal service. Later, it was extended to telegraph department. In those days the maximum limit for the scheme is INR 4,000. During the year 2016-17, nearly 2 lakh policies were acquired. The most attractive plan of this scheme is that there is higher returns via bonus for its policy holders at extremely low premiums. Below are some important features of the insurance scheme:

• The maximum sum assured - INR 50 lakhs 
• Policy offeror - Government of India 
• Nomination facility available 
• Loan facility is available by pledging the their policy as a collateral 
• Policy revival option available 
• Duplicate policy document provided if the original is lost 

Benefits of investing in this scheme:

1. Income tax exemption under Sec 88 is provided 
2. Assignment, loan, conversion, surrender  and paid up value options available 
3. Easy transfer to another circle within India 
4. Passbook facility 
5. Premium can be paid on an monthly, half yearly or annual basis 
6. Discount of 1% of the value is provided for advance premium payment for a policy period of 12 months 

There are seven types of postal life insurance plans. We will quickly look at the most appealing scheme for all. 

Whole life insurance scheme: 

• Under this scheme, the principal comes along with the bonus.
• The minimum age limit is 19 and the maximum is 55.
• The sum assured starts from INr 20,000 to INR 2 lakhs 
• Loan facility 
• insurance Period could be 15 years, 20 years and so on. 20 years will give more return 
• Link to premium table for the scheme - (see at last)

Thank you all for reading this and keep supporting my blogs. We wish to create a better world through knowledge sharing and experience sharing. 
Thanks, 

Kanishidhaa